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A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase...

A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase price of $325,000. On the acquisition date, the subsidiary reported a book value of Stockholders’ Equity of $120,000, comprised of $50,000 of Common Stock and $70,000 of Retained Earnings. An examination of the subsidiary’s balance sheet revealed that book values were equal to fair value for all assets, expect for an unrecorded patent, which the parent valued at $160,000 during the acquisition.
a.     What did the Parent buy? STOCK or STUFF?
b.     Prepare the purchase price allocation/goodwill calculation. Label all items.
c.     Prepare the JE the PARENT would make to record the investment.
d.     Prepare the [E] consolidation entry at the opening financial statements on the date of acquisition.
e.     Prepare the [A] consolidation entry at the opening financial statements on the date of acquisition.

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